more evidence of rents falling

by shoegirl Sun Feb 23, 2003 18:53 shoegirl at eircom dot net

When people say "rents are coming down" they mean that the average rent is more difficult for new tenants in properties currently on the market. It doesn't compel your landlord to reduce your rent, but if you leave he may find it difficult to get a higher price, or indeed, the same price.

However, just looking at the figures that the Irish Times are quoting it is hardly suprising that rents have stopped soaring. If two tenants share a property at €1300 per month, sharing the rent in two equal pieces, its still €650 for a room in a shared property, which is an outrageous price, particularly considering that this figure would pay for a €150,000 morgage over 30 years. Furthermore, in order for that figure to be less than 1/3 of the tenants gross wage, the tenant would need to earn at least €23,000 a year, which is still well over what a large number of non-property owning workers earn, especially outside Dublin and Cork. After tax this is still an enormous figure for a single person with no other outgoings, never mind somebody with dependants or other outgoings.

My deduction here is that landlords are finding it harder to hike rents and that is why they are stabilizing. However I would say that landlords are more likely to increase rents to existing tenants, a figure that is not measured. The figure we see is usually a measure of new tenancies.

by Ted - People for a Property Crash Sun Feb 23, 2003 02:41

There's only a limited amount of space if nobody wants to live in an apartment, like they do in many, richer, more sophisticated countries. Dublin had loads and loads of space for flats. The demand isn't caused by lack of space - its caused by cultural attitudes that are already showing signs of changing.

On the other hand, there are many thousands of isolated, badly-serviced, soul-destroying houses out there that have been built during the hysteria of the last few years - often 3 or 4 bedrooms occupied only by an overworked couple.

There's plenty of excess capacity in this market.

A land tax would be great (even rates for second houses would be something) but its not going to happen this side of a general election.

But a crash in the housing market might.

What can the ordinary person do to help bring such a crash about?

by Peter Handle Sun Feb 23, 2003 00:57

High demand on the finite amount of space drives rents up. This demand is socially generated. The landlord simply by ownership is able to appropriate the increase in value. The value should accrue communally and the only way to ensure is to, politically, enact a land tax. But don't hold your breath for Ahern to do this.

by Ted Tenant - Online Activists Against Speculation in Housing Sat Feb 22, 2003 23:52

if millions of people around the world can use the net to protest against war, surely a few hundred thousand tenants and first-time buyers can use the net to co-ordinate a fall in prices.

How about an online campaign aimed at reducing rents and lowering house prices? What can individuals do?

1. Don't compete to give the landlord/seller money
2. Talk down the housing market at every opportunity
3. If you are leaving a place say its because of the high rent (even if it isn't)

any more ideas....?